The Daily Hit: June 1, 2020

It’s time for your Daily Hit of cannabis financial news for June 1, 2020.

On The Site

Acreage

Multi-state operator Acreage Holdings, Inc. (OTCQX: ACRGF) said it has entered into two definitive funding agreements to receive up to $60 million. According to a company statement, the two funding agreements are as follows:

A Standby Equity Distribution Agreement with an institutional investor, under which the company may, at its discretion, periodically sell to Investor, and pursuant to which the Investor may, at its discretion, require the company to sell to it, up to $50 million of the Company’s Class A Subordinate Voting Shares, no par value.

Completion of a private placement offering, in which it issued $11 million in a principal amount under a secured convertible debenture, with gross proceeds to the Company of $10,000,000 before transaction fees.

Valens

Valens GroWorks Corp. (VLNCF) has entered into a syndicated credit facility with the Canadian Imperial Bank of Commerce as Co-Lead Arranger and Administrative Agent, and ATB Financial as Co-Lead Arranger. The Lenders will provide The Valens Company up to C$40 million of secured debt financing.

International cannabis company Clever Leaves will be listed on the NASDAQ (NASDAQ:NDAQ) as a result of its agreement with the Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA). According to a company statement, SAMA and Clever Leaves will combine and become a publicly-traded company on NASDAQ.

New Study

Green Horizons released a detailed report studying cannabis consumers and the cannabis market in general. The report addresses a diverse selection of topics like social concerns with using cannabis, talking to non-users about why they choose not to use cannabis, and dispensary reports and findings. An interesting part of the report focused on cannabis branding, and how that impacts cannabis users at large.

With terms like “social distancing”, “quarantine”, and “safer at home” orders now common parlance thanks to the Covid-19 global pandemic, it seems an odd time to forge ahead with opening new retail establishments, yet several determined cannabis companies are betting on a better future and doing just that.

Dispensaries

Small business website “The Balance” itemizes the expenses associated with opening a storefront, which include licensing fees, rent, inventory, staffing, and equipment to name a few.  To open even a small business in an inexpensive city or town can cost thousands of dollars. Factor in the extra costs retailers will have to swallow to stay within Covid-19 guidelines for reopening such as plexiglass cashier guards, protective equipment for staff, and restrictions on the number of customers allowed in the store at any one time, and the overhead becomes untenable for many current and aspiring shop owners.

In Other News

Jushi

Jushi Holdings Inc.  (OTCQX: JUSHF) is temporarily closing its BEYOND / HELLO™ Center City and Northern Liberties store locations in Philadelphia amid ongoing demonstrations. Chief Executive Officer Jim Cacioppo said, “We fully support an individual’s right to freedom of speech and the touching peaceful demonstrations that we have seen around the country. We are heartbroken by the murder of George Floyd and the pain it is causing communities across the country that we not only work in, but live and love.

Unfortunately, certain opportunistic bad actors have at times manifested unacceptable behaviors. This past weekend, our Center City and Northern Liberties locations in Philadelphia were broken into, making it impossible for us to safely operate. In addition to these two temporary store closures, we have limited our hours at certain locations in Pennsylvania and Illinois.”

M Jardin

MJardin Group, Inc. (OTCQX: MJAR) has terminated its previously announced acquisition of Carson City Agency Solutions, dba Cannabella, a producer of edibles and topicals located in Carson City, Nevada.

The acquisition, which was expected to close in late 2019, could be terminated by the parties if the transaction hadn’t closed by April 2020. Given the delay in transferring the license, the Company elected to terminate the acquisition. The Company and the vendor are in discussions regarding fees, expenses, and the status of the deposit consideration made in respect of the acquisition.

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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